Which of the following statements is true?
a. The Phillips curve has always been stable.
b. If the Phillips curve shifts outward to the right this illustrates a greater tradeoff between unemployment and inflation.
c. Keynesian economics assumes a vertical Phillips curve.
d. According to the natural rate hypothesis the Phillips curve is downward sloping.
e. All of these.
b
Economics
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If the annual inflation rate in an economy is positive, the purchasing power of a dollar kept in a bank:
A) will decrease over time. B) will remain the same over time. C) will increase over time. D) can increase or decrease depending on the economic growth rate.
Economics
Which of the following represents the Lucas supply function?
A. Y = f(Pe + P) B. Y = f(P - Pe) C. Y = f(P + Pe) D. Y = f(Pe - P)
Economics